SEC Reaches Deal Over Delphi Audits

Law360, New York (February 26, 2008, 12:00 AM EST) -- The U.S. Securities and Exchange Commission has buried the hatchet with a pair of former Deloitte & Touche LLP partners over their alleged misdeeds in connection with the 2000 and 2001 audits of now-bankrupt Delphi Corp.

The SEC revealed on Tuesday that it had reached an agreement with Nicholas DiFazio and Duane Higgins, following the duo’s purported improper conduct during their long-ago examination of the auto supplier’s financial statements.

The SEC contends that DiFazio accepted Delphi’s use of special accounting rules in order to escape recognizing...